Tokyo Stock Exchange Governance Code: The Challenge for Japan

The Financial Services Agency and Tokyo Stock Exchange announced on 5 March 2015 details of the new Corporate Governance code (“Code”) related to the Revision of the Japan Revitalization Strategy.

The Code will seek to bring listed companies in line with globally recognized standards, with the expectation to have two or more independent external directors appointed to their boards and to implement an annual evaluation of their board of directors.

In a new paper, FTI Consulting takes a look at the challenges this presents to Japanese companies who may have limited or no previous experience or processes in place for adoption of such new practices, and offers guidance as to how these challenges can be approached and the Code effectively implemented.